2022 started out with the hope of a recovery from the pandemic but ended with a recession. With the advent of 2023 we are left to ponder on what is ahead for businesses in 2023.
It’s the Recession, Stupid: The war in Ukraine has affected the world economy which was struggling with recovery after the pandemic. Interest rates have increased which has adversely affected the real estate market and businesses which are facing higher operating costs and higher costs for loans. We may see more businesses shut down because of the increased costs or an inability to pay off their loans. It is doubtful that we will seen interest rates rise to the levels we saw in the late 1970’s and early 1980’s. I recall thinking I was fortunate to get a mortgage rate of 13.5% on my first home purchase in 1979! Businesses will need to carefully monitor their cash flow and receivables.